Photo by: Bloomberg
There are three broad transitions under way that are likely to have a considerable impact on the mining and manufacturing sectors in South Africa and Africa, especially given the demand for critical minerals.
This was noted by South Africa’s Department of Trade, Industry and Competition (DTIC) acting deputy director- general, Nimrod Zalk, on the first day of industry cluster Mining Equipment Manufacturers of South Africa’s Mind Shift conference.
The conference, titled ‘Innovation, Digitisation and Skills in the South African Mining Supply Chain’ was held on May 24 and 25.
Zalk highlighted that the three transitions would unfold with the push for stronger regional trading chains as the African Continental Free Trade Area (AfCFTA) Agreement was implemented.
The first of the transitions is the green energy transition, with all the critical minerals this requires.
Second, Zalk said, was the combined digital transition and Fourth Industrial Revolution, which required the use of various critical minerals.
Lastly, and essential for Africa, was the incomplete green agricultural revolution, Zalk outlined, adding that this required, among others, minerals to produce fertilisers.
He noted that the Russia and Ukraine conflict highlighted the need for higher agricultural production on the continent, to ensure food security and to open up opportunities for greater exports.
Meeting the demand for these transitions presents opportunities for South Africa and the rest of the continent, given the plethora of resources it holds, but also, the solar, wind and hydro resources that it has to produce renewable energy.
The combination of these factors opened up considerable opportunities for South African miners and equipment manufacturers, Zalk stressed.
He highlighted that the South African mining sector was well placed to lead the shift from climate-destructive to climate-smart minerals that were extracted in an environmentally conscious manner.
Zalk averred that this would require the digitalisation of the entire mining value chain, from prospecting to the end product, and even end-of-life in terms of recycling.